Question
An Australian bank, subject to APRA capital regulation, has Risk-Weighted Assets (RWA) of $100,000 and total assets of $150,000. The banks regulatory capital is shown
An Australian bank, subject to APRA capital regulation, has Risk-Weighted Assets (RWA) of $100,000 and total assets of $150,000. The banks regulatory capital is shown in the table below.
| Common Equity Tier 1 (CET1) | $7,000 |
| Additional Tier I | $500 |
| Tier II | $2,000 |
a. Check whether all Basel III minimum capital requirements are met.
b. Calculate the amount of CET1 that remains free after meeting the minimum requirements. Explain if the regulatory buffer(s) requirements are met and if any restrictions will apply, as a result.
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Auditing and Assurance Services An Applied Approach
Authors: Iris Stuart
1st edition
73404004, 978-0073404004
